Sales of total petroleum products in Pakistan clocked in at 1.41 million tons in August 2023, a decline of 8% year-on-year, amid economic slowdown and drop in oil-based power generation.
The decline in sales comes “mainly on account of 64% YoY fall in Furnace Oil (FO) sales given lower reliance on FO-based power generation due to the addition of new local coal-based power plants,” said Arif Habib Limited (AHL) in a note.
FO sales nosedived in August 2023, amounting to 0.12 million tons, as compared to 0.33 million tons registered in same period last year (SPLY).
However, sale of MS (petrol) inched up 5% YoY, clocking in at 0.67 million tons in August. Volume of High-Speed Diesel (HSD) also improved by 11% YoY, settling at 0.55 million in August 2023.
The increase comes “amid absence of heavy rainfall as compared to last year,” said AHL.
However, on a month-on-month basis, POL products offtake witnessed an increase of 4% during August, “due to increase in fortnightly pricing trend during the month,” said AHL.
Volumes of MS inched up by 2%, whereas HSD offtake increased by 11%. Meanwhile, FO sales registered a decline of 18% MoM.
July oil sales down 6pc to 1.35MTs YoY
During the first two months of FY24, sales of total petroleum products dropped marginally by 7% YoY to 2.76 million tons compared to 2.97 million tons in SPLY.
Product-wise data showed that the decline was lead by FO sales, which plunged 61% to 0.26 million tons. Meanwhile, the offtake of MS, HSD at 1.33 million tons, 1.04 million tons, respectively, an increase of 8% and 11%.
Company-wise, PSO’s offtake depicted a drop of 8% YoY in August 2023, which is primarily owed to 86% YoY plunge in FO sales. Whereas, offtake of MS, and HSD reported a healthy growth of 15%, and 32% YoY, respectively.
Similarly, sales of Attock Petroleum Limited (APL) and Shell Pakistan Limited (SHEL) decreased by 2% and 11% YoY, respectively, due to a fall in sales of all products.
However, Hascol Petroleum Limited (HASCOL) sales witnessed an increase of 27% YoY.